The proportionate expenditure on food ______ with decrease in total income.
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The proportionate expenditure on food __increases____ with decrease in total income.
This can be deduced due to application of Engel's law. It states that as income rises, the proportion of income spent on food falls, even if the absolute expenditure on food rises. This law was named after the statistician Ernst Engel (1821–1896).
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Hope it helps and solves your query!!
It is definitely a very interesting question to solve and do some brainstorming.
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The proportionate expenditure on food __increases____ with decrease in total income.
This can be deduced due to application of Engel's law. It states that as income rises, the proportion of income spent on food falls, even if the absolute expenditure on food rises. This law was named after the statistician Ernst Engel (1821–1896).
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Hope it helps and solves your query!!
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